Understated Brilliance from Corey Johnson
Originally posted on CityStink
Tuesday August 7, 2012
Augusta, GA
By Al Gray
The author, Al M. Gray is President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns.
During the rampant hysteria of the Augusta Commission’s July 17, 2012 meeting, a quiet, serious voice spoke. It should have been the loudest voice. It wasn’t. It was the clear voice of reason. It came from this commissioner: Corey Johnson.
Mr. Johnson spoke of a dire need for a contracts expert to come in and straighten out Augusta’s many contracts. He spoke of this needing to be a permanent position in government. You can hear his 1 minute contribution of wisdom here: (press play button in lower left hand corner of the screen)
Corey is showing astuteness and leadership during a meeting when those to either side were flailing like drowning men. Why is he right? These are known issues:
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A one-sided parking deck contract favoring the management company with a blank check and a $238,000 (based upon original plan) subsidy.
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A Tee Center Contract that provides an unlimited conduit into the general funds of Augusta.
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A recorded Kitchen Equipment partnership agreement that remains in effect while Augusta has paid nearly $1.4 million for equipment that is the responsibility of another party, according to those agreements.
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An Ambulance contract that bears a $1.3 million subsidy, whereas the same company apparently has a $400,000 subsidy in the neighboring county.
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A sewer plant contract that reimburses every conceivable cost, yet provides for a 12% fee and a separate $250,000 director fee.
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The problematic Mobility transit contract.
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Major cost-plus, guaranteed maximum price, contracts that have not had costs scrutinized to verify that the costs are actual costs.
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Myriad issues with medium and small contracts.
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Limited or nonexistent rights to audit contracts.
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Failure of Augusta Housing to obtain the actual costs before reimbursing Laney Walker contractors for housing unit construction.